Most withdrawals from life insurance policy cash value amounts are typically tax free up to __________.

Question

Quizplus · Accepted Answer

Most withdrawals from life insurance policy cash value amounts are typically tax free up to the policy owner's basis in the policy. This is because the policy owner has already paid income tax on the premium dollars, or basis, so they won't be taxed again when or if they withdraw those funds from the policy.

Most Withdrawals from Life Insurance Policy Cash Value Amounts Are